Fed Reverse Repo at $34.7B; 7-Year Treasury Auction Lowest Bid-To-Cover Ratio; 4-Week Bill Bids $261.6M; Discount Window Loans $4.19B

The Federal Reserve conducted several operations on August 28, 2025, including a reverse repurchase agreement (reverse repo) operation where 21 counterparties took $34.744 billion, up from the previous $28.574 billion with 16 bids. The Fed also announced bids totaling $261.6 million for 4-week Treasury bills, which saw a bid-to-cover ratio of 2.68, slightly higher than the previous 2.61. The high yield on these 4-week bills was 4.245%, down from 4.3% previously. For the 7-year Treasury notes, the Fed announced bids totaling $5.3 billion. The 7-year auction experienced a bid-to-cover ratio of 2.49, lower than the previous 2.79, marking the lowest bid-to-cover ratio in over a year. The high yield for the 7-year notes fell to 3.925% from 4.092%. Additionally, Fed discount window loans amounted to $4.19 billion in the week ended August 27, 2025, slightly down from $4.41 billion the prior week.